Haidi welcome to daybreak australia. Counting down to asias makeup major market opens. Shery the top stories this hour. Treasury yields hit some of their highest levels since 2007 head of fed today. Instacart making davids cash gains on its trading day. Haidi oil prices are presenting the fed a quandary, adding to inflationary pressures. Shery indonesia ion of critical mineral trade deal with the u. S. As the green transition accelrys. We will hear from the indonesian president. We are seeing a little bit of green but not a lot of movement. We have the s p 500 down to a three week low. This on the eve of the fed rate decision. The expectation is for the fed to deliver a hawkish hold. This with the fact that we do have Higher Oil Prices, not to mention traders were watching hot canadian inflation data. For more clues of where global prices are going. Take a look at treasury yields which rose across the board. The fiveyear and 10year yields adding the highest since 2007. Youre watching wti prices in the asian session, down a little bit but above 91 per barrel. Brent topping 95 a barrel at one point. Concerns about where the fed goes. Instacart trading debut, jumping 12 . This following arms listing as well. Perhaps we could see a boost for Equity Capital markets. They really need it. Lets talk about what is happening with the inflation picture. Oil prices are low for their 2022 high. The latest surge is posing risks to the feds efforts to engineer a soft landing. Lets bring in our u. S. Economist su keenan lets start with stewart. We are expecting the pause. What happens if we continue to get Higher Oil Prices . Guest there is residual effect of higher oil and Energy Prices, Higher Energy prices, higher jet fuel. Higher Airline Ticket fares. We can see some effect in the core. I imagine the fed will be reading through an increase in the headline inflation, it has a good rule of thumb that has served it well. A 10 increase in the price of oil begets 20 basis points of inflation thereafter. The fed anticipates this. And we have not seen this much move in gasoline prices over the month. That is what is going to matter for consumers most. That is with the fed will be looking at. Shery the concern is if we get Higher Oil Prices, we might repeat history. In the 1980s and 1990s, we fell into a recession. Tell us about what we are expect in terms of oil prices. Su how much higher do we go from here . We heard the other day the ceo of one of the major oil companies, chevron, saying 100 is right in front of us. Even the bearish banks are turning starting to jump on that prediction. You can see oil has jumped year to date, you know the story, it has to do with the shrinking supply thanks to opecs extending output curves. Major moves in time spreads. These are the markets most widely tracked gauges. Brent and wti are trading in backward asian, that is a very bullish structure. It indicates tight supplies, the front end of the curve is more expensive than the backend. That is about a dollar difference. Traders and brokers say this happens as premiums for real world barrels so higher. Especially here in the u. S. Oil is having a relentless search and it is starting to be a major issue. We are seeing its impact trading, wall street Financial Advisors telling their clients to jump in to oil stocks. We know that on monday the Saudi Oil Minister and at a canadian conference talked about keeping markets stable, which has caused concerns. Output plans will be reviewed every month, but they have extended their output curbs. It is putting pressure on an already tight market. Haidi how much should we expect us to show up in the headline inflation in september . Stuart since oil prices act through gasoline prices, we can track the average daily class lien daily gasoline price in august. Right now it is about flat if we are not seasonably adjusting. We always anticipate there is going to be an end to summer driving season, we have not seen that. The seasonal adjustment factors boost up the contribution from gasoline in september. So far what we are tracking, it looks like it will be five basis points. Headline cpi from gasoline. Su is right, we will see Energy Prices continue to rise. For every 10 percentage points, we end up seeing 20 basis points in headline inflation. Haidi we have other disruptions to global gas markets. What does this mean in terms of gas prices . Su we are seeing gasoline prices, the highest seasonal rates we have seen in a decade. To pick up on what stuart is saying, where you see said see spending on gasoline prices move higher, that typically precedes a recession. This is a major concern not just for economists and the fed, but for the biden campaign. President biden had made promises that he would keep a cap on gasoline prices and oil prices. And what opecplus is doing in terms of the output curves is not helping him out. In terms of oils direction, while it appears we are going higher, we are seeing a leveling out in u. S. Trading. We did not see wti level out towards the end of the day and reverse some of its gains. Technical analysts are warning we could be setting up for an overlong condition in which oil does retrench. But many analysts are saying shortterm, we are likely to see oil weekly move above 100. Shery we have the latest from in terms of the global economy. Right now it is a downgrade of growth expectations. What would that mean for Central Banks . Stuart we are coming to a point where there seems to be consideration of central bank divergence. It seems like they are acknowledgment even though there seems to be a growing consensus that risks are shifting to the downside in terms of growth, inflation is not fully tamed around the globe. There is a contribution to headline inflation, it trickles through to core inflation, there are components that have not come off yet, including shelter. Which is Interest Rate sensitive over time. The oa cd is acknowledging that even though there is risk to growth, Monetary Policy makers need to keep their foot on the brakes to prevent core inflation from surging. Shery instacart racking up that 12 trading debut, gain after one of the years biggest ipos taking the value of the Online GroceryDelivery Company to over 11 billion. Katie ruth drews us now. Katie ruth joins us now. How did instacart do, what does that tell us about the future of this stocks trading . Guest the good news is it went up, but not as much as they were hoping. It popped this morning, maybe 40 . Now this is more subdued, 10 . But it is still up from where they price. They priced it at the top of the range. Haidi we have seen other in the ipo space as well. Katie a lot of people are watching instacart, which has followed arm and claudio, clvio, a lot of people are curious to see how this does. The ipo window has been closed since 2021. It has been over a year, almost two years, since we have been seeing big tech ipos. There has been much that has been said about whether the window is open. Bankers are trying to price these conservatively enough that they pop and make a good First Impression on the market so other companies will feel safe to go public soon. Shery is it interesting that we saw instacart lining up these big investors to support their listings, what arms did as well . Is this how you ensure the health of your trading debut . Katie it definitely helps to have big anchor investors writing checks and suggesting that they are betting on the company. Some of these ipos did what is called a low float low flow ipo, where they do not release a lot of shares. That artificially raises demand because there is limited supply. What we are seeing already with arm is it is still above its ipo price from last week. But it has been trading down. Already throughout the day today with instacart, we will see art happens when the market opens next. When the market opens next. Haidi an exclusive conversation , the indonesian president says he wants the u. S. To play a vital role in the countrys transition to agreement economy. He will make it up top priority for his talks with president biden. He had previously inked a 20 billion climate financing deal. With regard to the gdp, i will bring this up again. So that the commitment can be implemented immediately. Indonesia wants to obtain a special tax credit for ev batteries. So that we can enter the u. S. Market. And indonesia is pushing for the Critical Minerals agreement with the u. S. To be signed soon. If this is granted as we want, of course this is good for indonesias products that will be able to enter the large u. S. Market. Shery there will be more from haslinda and the exclusive conversation with the indonesian president , talking about infrastructure and growth prospects. The riskaverse session we had, a lead from wall street, and the concerns over the stickiness of energy driven inflation. Creating caution when it comes to the opening in asia. Take a look at a mixed picture across the region. A bit of downside when it comes to sydney futures. We expect to see upside when it comes to the energy producers, oil majors, the heavyweights in trading in australia. We may see more pressure given that this is expected to weigh into the rbas decision. Same picture as we see in the u. S. The aussie dollar seeing an upside, the commodities line, the oil link when it comes to the likes of the aussie, the loonie and the kiwi. Just shy of 65 u. S. Cents. New zealand stocks on the back foot in the early part of the session. Dollaryen Holding Steady at this point. We are watching when it comes to policymaking out of china. Incremental measures when it comes to the pboc, we could see even though they kept their main rate on hold, we could see the incremental move when it comes to the oneyear prime rate to be trimmed by chinese banks. Even though we did see the pboc stay on hold. This d correlation is quite unusual. We saw that start in august. These are rates that town that tend to rates that tend to move in tandem. For that one year this is a case of playing catchup given that we did not see a move in tandem in the august fixing. That is one to watch whether or not it makes a big impact in terms of the broader uptake for credit. We have seen that some of the lowering of rates and freeing up of rrr moves has not had to the impact when it comes to lending appetite. Still ahead, the Biden Administration expected to issue an order on how the federal government uses ai. Speaking to the head of the center for democracy and technology on why legislation could be complicated. First we will be talking Market Strategy with Gradient Investments and why they think the u. S. Shutdown could be good for the economy. This is bloomberg. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Europe is slowing down, we were at the beginning of the biggest ever recalibration of the economy that we ever had. An unprecedented rate of speed. That is why there is such attraction around everything that is private debt. For private debt, the levels will be very low because unless your assumption is that we go through a very severe recession, there is not an environment where these debt portfolios will be severely impacted. It is a reasonable expectation for europe over the next year, pretty muted performance. We have seen fewer transactions than two years ago is plausible. The recalibration we talked about, we expect people to pause and figure out where valuations are. There is no doubt that inflation is impacting our portfolio, recession is coming, the question is when and at what magnitude. Haidi some of the executives we spoke to at the ipm private equity program. We wont be able to ignore Energy Prices, Mariann Montagne s Portfolio Manager at Gradient Investments. This is going to be a game changer when it comes to the outlook for higher rates and held for longer. Mariann the question is, will the Higher Energy prices, which are up 30 since the start of july, seep into core inflation . The Federal Reserve tries to ignore the inflation rate that includes volatile food and Energy Prices. But once you get the big increase in energy affecting other parts of the economy, and driving core inflation higher, they cannot ignore that. That is a big question as to how could today continue to maintain rates or drop rates anytime soon. If we do have this increase in the core rate. Haidi does it change how you invest Going Forward . Mariann i think for the time being, we are just going to anticipate rates being flat. And then i do not think we will get a true indication out of the Federal Reserve tomorrow as to what the next steps would be. We are looking at the dot plot, that his expectations but not a plan, not a set plan. And everyone will be looking for those. To down over the next those dots to come down over the next quarters. We will take away and see approach. Shery we also do not have much clarity when it comes to the u. S. The uaw strike and how long that could go for. How much does that impact your calculations about these companies that could perhaps face threats to their label negotiations labor negotiations . Mariann i am from detroit, i come from a long line of Auto Industry worker families. And i was in detroit over the weekend. I can tell you that we have never seen a big strike against all of the big three companies at one time. This is unprecedented. Secondarily, when you have on the strike, they do not get unemployment, they dont get strike pay, they get nothing. The third thing to note is that when you have an assembly job added or deleted, it affect six other jobs. It is the most Significant Impact on any part of our economy. When they talk about going from 13,000 people on strike to another 10,000, that impacts 160,000 households around this would include north america if we are talking about recent indications. So canada as well as u. S. This is a Significant Impact on 160,000 households. People have to pull back on their spending or they have to spend a lot more wisely and be choosy about where they are going to spend. Shery does that mean we need to be choosy about these companies that we are investing in, especially because if we do get more of these labor actions across the board, canada has threats of strikes. And we have seen the strikes in hollywood, actors and writers. Given that Bargaining Power seems to be moving towards workers, is this going to affect the bottom line of these companies . Mariann it will absolutely affect their bottom line. But you have to understand that honda is taking huge market share from the big three. If you continue to increase cost, that means increased prices for u. S. Autos or for from the u. S. Automakers. That gives the pricing advantage to honda and others that are not union represented. It is really a disservice in the long run. Two American Workers or workers for american companies. For them to jack up the prices, the rates, the cost of these cars. Shery good to have your thoughts, Portfolio Management consultant at Gradient Investments. We have more to come on daybreak australia. This is bloomberg. If sports fans built a streaming service. Cant believe the football season is over. Yeah. But with my stuff, we can rewatch all the games weve recorded. The minnesota comeback jjs finale. Butt punt oh, is that what the my stuff feature was invented for . Saving buttrelated content . Cause i thought it was for keeping your favorite tv shows and movies all in one place. Im sorry, mr. Sanchez. Live tv and sports. And more but mostly sports. Thats fubo haidi youre watching daybreak australia. Amazon is planning to hire 250,000 workers ahead of Holiday Shopping season. A jump from last years quota, it will span a variety of roles. Amazon will also boost the average pay for logistics workers amid a labor shortage. It comes as Analysts Expect overall hiring to stay muted. For managers of the bankrupt Crypto Exchange ftx suing the parents of sam bankmanfried. The company accuses them of receiving millions of dollars at the expense of its victims. Ftx fell apart when 8 billion of debt, and what cost prosecutors allege was one of the largest financial frauds in u. S. History. Consumers accidentally carted limbs of microsofts future giving to games future videogame plans. They details were part of the ftcs antitrust suit against the takeover of Activision Blizzard including unannounced games and a refreshed console. Information has since been removed. Next on daybreak australia, hearing more from our exclusive interview with the indonesian president. Hi, im jason. Ive lost 228 pounds on golo. So when my doctor told me i needed weight loss surgery, i knew i had to make a change. Golos helped me transition to a healthier, sustainable lifestyle. Im so surprised just how crazy my metabolism has fired up. I have a trust in golo cause i know it works. Golo isnt like every other program out there, and im living proof of it. announcer change your life at golo. Com. Thats golo. Com. Haidi the indonesian president says southeast asias longest economy can enjoy growth as high as 7 . He steps down next year after two terms in office. He spoke exclusively with bloomberg ahead of the launch next month of a new highspeed rail line. I am very happy and also the indonesian people are happy because the highspeed train is the only one in southeast asia. With this infrastructure, we can build a foundation of progress. Most important link, this will increase indonesias competitiveness. Last years imd Competitiveness Index survey showed how the index rose from 34 to 44, up by 10 ranks. This is the highest increase in the world. We need this. Its very important for our country should be able to compete with other countries, for logistics to be more efficient as it will have an impact on the welfare of the people. It came at a high cost. 7 billion. More than 1 billion. Is it worth it . Some people say it will take 40 years before you break even. Mrt, lrt, highspeed trains should not be calculated by profit and loss. Dont count profit. What should be calculated as the benefit. Because of congestion in jakarta , the country loses more than 100 trillion. Mass transportation must be built to overcome congestion, pollution, and provide services to the community. If we calculate the loss per year and compare with highspeed trains, lrt mrt, these items provide net benefits for the people. I want to touch on the economy. When we spoke in our first interview when you became president , you talked about an economy that will grow at 7 . Right now, the gdp is still far away from 7 . We are in the final year of your presidency. Why have you failed to get to 7 . The target must be low to get it would be too easy for our team. The target must be given as high as possible so that theres a strong desire to achieve it. Second, the Global Economic situation is not favorable. Third, the readiness of domestic infrastructure in order to compete and attract investment is also not yet supportive. I think it must be resolved one by one. Infrastructure is resolved. Investment Licensing Services are improved. If we can consistently do this, there will be open investment. Many industries will build in indonesia. Reaching 7 is not difficult. I estimate it will happen in 2027 to 2028. Youve laid the foundation of infrastructure for the country to get 7 . Yeah. Its because we just built the foundation. Weve built 16 new airports, 18 new ports, 2040 kilometers of toll roads, 36 out of 61 dams have been completed. The infrastructure completed, our competitiveness is strong. Thats where our Economic Growth will jump up. Its been nine years of your presidency. We are on the cusp of the leadership transition. Are you confident that your successor will continue with the plans and policies that youve adopted . [laughter] well it has been prepared. It has been prepared. Dont let every leader have their own vision. Change the vision, change the orientation. Every change of leader changes the orientation so we end up starting from the beginning again. We have a medium and longterm development plan. This is very important. It includes the development of a new capital city, energy transition, and optimization of infrastructure. If the medium and longterm plans are in place, this is indonesias vision towards indonesia 2045. Haidi the indonesian president speaking exclusively with haslinda almond. The ukrainian president has urged World Leaders gathered at the u. N. General assembly to show a united front against russia, speaking at the gathering. He condemned moscows latest moves to escalate the war. Russia is launching food prices as weapons. They impact from the Atlantic Coast of africa to the southeast asia. This is the strength scale. I would like to thank those leaders who supported her black Sea Green Initiative and program grain from ukraine. Shery some leaders have use the General Assembly to double down on their support for ukraine. Annmarie hordern has more from the event. Daniel president annemarie he said what would that mean for other independent countries of the world order allows ukraine to be carved up. President biden was speaking in new york city. Speaker mccarthy talked about concerns about accountability for ukraine aid coming from the United States. He says he will have questions for zelenskyy. I spoke to the nato secretarygeneral and he said he expects the u. S. To continue support for ukraine. Take a listen. Im confident that nato allies will continue to support ukraine. It would be a tragedy for the ukrainians and dangerous for us. We will be more vulnerable. Send a message to him in china. When they use military force and violate International Law, they get what they want. That would make us more vulnerable. Its in our security interest to support ukraine. Hopefully the United States will continue to support ukraine. Annmarie they will need an washington, d. C. Later this week. Zelinski will meet with u. S. Lawmakers on capitol hill. Annmarie hordern, bloomberg news. Haidi lets get to the other geopolitical stories we are watching. Strategic coronation with russia. A meeting of their leaders in beijing. The Prime Minister is on a three day trip to moscow for security and Foreign Policy talks with his russian counterpart. Vladimir putin will visit china next month for a form and a meeting with president presidency. U. S. Commerce secretary Gina Raimondo says theres no evidence that chinese phone maker huawei can make advanced chipset scale. She says she was upset that they released a new phone with a seven millimeter chip. Washington has opened an investigation into their phone amid export controls on beijing. Shery Justin Trudeau vows to hold people to account for the murder of a leader in the country which is government alleges was masterminded by india. One of the things that is so important today is that the government of india takes serious this matter. It is extreme lease areas and it has farreaching consequences in International Law and otherwise. For canada, we will remain calm, we will remain grounded in our democratic principles and values. We will follow the evidence and make sure that the work is done told people to account. Shery so how are people in canada reacting to these allegations and what are the next steps for the trigger government trudeau government . Derek the reaction was of shock. There are significant ties between canada and india. India is the largest source of immigrants to canada, the largest source of foreign students. Theres a growing economic relationship and tens of billions of dollars of investment held by canadian funds in india. Those ties have grown for a long time and theres a significant indian dias bra in vancouver and toronto in particular. These kinds of stories, they really get noticed. I would say adding to it is just the nature of the allegation. That a canadian citizen was shot in cold blood in the suburbs of vancouver allegedly by agents of the indian government. Its reverberating around the country and people can talk of little else. Haidi how is the Biden Administration reacting . Derek the Biden Administration has reacted somewhat cautiously but we did hear from john kirby of the National Security council who said that these are very serious allegations and that india needs to participate in a thorough investigation. Of course, the administration is in a difficult spot as you say. Canada is a major ally with whom it shares a border. A significant trading partner. A very long history. At the same time, canada is a country of only 40 million people. It doesnt have the geopolitical weight that india has. Biden is seeking out modi as an ally, as a counterweight in the Indo Pacific Region to china as a potential security partner, Stronger Security partner in asia. So the u. S. Is walking a fine line. I think the Trudeau Administration does understand that. They understand that public publicly, the United States and other allies will have to be cautious. But trudeau and his government, in a story we recently published, makes it clear that they kept the allies, the United States and white house, in the loop all through the summer as they were investigating. Haidi coming up next, we discussed the u. S. And china with the center for democracy and technology. This is bloomberg. Shery perhaps the hottest topic this year has been ai. Governments and regulators have been scrambling to get a grip on Artificial Intelligence and find ways to protect investors and consumers. U. S. Congress is considering new rep new regulating. It held meetings with tech executives who offered mixed views on the risks. Nvidia and microsoft have signed pledges to make i i ai safed are. Chinese authorities came to a green light to the first batch of Generative Ai Services for public rollout, clearing the way for offerings from baidu. Beijing also loosen some of the guardrails it proposed for chatterbox chat box style services. President and ceo of the center for democracy and technology, a nonprofit that works to protect human rights in the digital age. Great to have you with us in person. We know in the u. S. That congress hasnt had the best track record when it comes to regulating technology. So what are we expecting on the regulation landscape when it comes to ai . Alexandra clearly they are paying attention. They gathered all these tech ceos for a meeting that was open to all senators on a bipartisan basis. This was a highvalue meeting with powerful figures gathered. Whats important to note is that they had Civil Society leaders there which is policymakers trying to send a signal about the public issues they are focused on. Civil rights. Consumer protection. The impact on workers. Hopefully we see more engagement from congress Going Forward. This was about asking questions. The Biden Administration is being very busy on the executive side as well. Shery is there a risk that countries like china will get ahead . Alexandra without question. Policymakers are feeling the pressure. Thats why you are seeing the senate convene these meetings with urgency. They are doing this in a couple different ways. Federal agencies applying existing laws to these new technologies. When ai is being used in hiring or equal Employment Opportunity looking at that area, when people misrepresent what ai tools can do, the ftc is saying it will step in. The Biden Administration has been pursuing its voluntary commitments with the companies which they say is just the beginning. Clearly what they are trying to do is be responsive to this moment and shape the innovation as its happening and put themselves in dialogue with otherworldly dolls other World Leaders. Haidi what are the biggest impediments to progress . Im wondering how difficult it will be to move from broad consensus to actual implementation. The technology, we are still trying to get a grip over how it will be utilized. Alexandra thats the exactly right question. This is hard. We think we have good consensus now, that people are good at describing the problem. At a high level, we can say that we dont want ai to be biased, we want to protect peoples privacy. What does that actually mean in practice . When ai systems are being used today, whether its in a chatbot or integrated into Search Engines or in hiring or insurance decisions, those have an Immediate Impact on consumer lives. We need to move quickly to try to have people think about what the responsible frameworks for governance are and legislate. For the longterm safety risk, thats hugely important but weve been light on solutions. One of the most popular is the idea that to go out into the world, these models will have to be licensed in advance. In the u. S. , that raises Big Questions about how we think about the market and how we think about competition. Theres a lot of work to be done as well as educating Companies Across the economy to make sure they are making smart decisions and are smart purchasers. Haidi weve talked about the competition aspect, given that everything tends to move faster when it comes to china. If you take a look at those more aligned with the u. S. , are there any models that you think are moving towards the right direction . Is there a possibility for intergovernmental cooperation in this area . Alexandra absolutely. Theres a lot of conversation about ai happening in new york. Some people are moving fast already. The european ai act is in the trial process right now which means it is nearing completion. Thats expected in the new year. For others, they are taking a slower approach, doing the same effort as the u. S. One of the things that im noticing is this focus on the need for a multinational conversation. President biden talked about it today, again called for collaboration and action. Pretty soon, many leaders will reunite in the u. K. On these issues. They are holding in ai safety summit at the beginning of november that will bring many Different Countries together including china for the first day to really try to get further conversation about what safety norms look like in the space. Shery how challenging is it to make progress on the multinational front . Alexandra hugely difficult. Some of this involves real value conversations. Aligned countries can say that they have an equal approach. The approach of china and the u. S. Is very different. In the u. S. , weve seen sensitivity for online. In china, they came out faster with regulations on that front. On the flipside, in the u. S. When i at ai is used for surveillance processes, thats usually controversial and problematic and weve been strong about pushing for guardrails there. Figuring out what the problems are going to be and how to reach alignment is complex. It will have to be the path forward. These countries operate on a multinational basis. Theyve experiences across borders. We have to try to find alignment. Theres room for countries to come up with their own approaches for sure. These baseline protections and expectations, we will have to be in vigorous dialogue. Haidi always a bit overwhelming in terms of getting those insights of how far we have to go from here. We do have an alert crossing the bloomberg. The balance of payments for new zealand. 4. 2 billion kiwi dollars. That is shy of estimates of 4. 5 6 billion. The current deficit proportion of 7. 5 of gdp in the 12 months to june. We have much more ahead here on daybreak. This is bloomberg. Fabulous surroundings. But everyones looking at their phones for Financial Insights from merrill. Is he hailing a ride to the concert hall . No. Hes making sure his portfolio and retirement plans work in harmony. They want to adopt a child and build a new home. So theyre talking numbers with their merrill adviser. Shes not researching her next role. Shes learning how to handle market ups and downs without the drama. Personalized advice so impressive your money never stops working for you with merrill. A bank of america company. Shery youre watching daybreak australia. Electric vehicle Battery Systems and components at a dip detroit factory. The move to diversify into green energy. The ceo says the company will work at an existing 400,000 squarefoot plant to supply its fleet of electric or mining trucks. Banks are set to be looking into financing a 15 billion program to protect the indian ocean habitats. One of the environmental groups behind the push says the banks have discussed bonds and socalled debt for nature swaps. The private capital would feed into the Great Blue Wall Initiative which is backed by the united nations. Haidi australias bureau of meteorology has declared an el nino climate platter pattern. It means we can expect a summer of severe heat and bushfire risk. Paul allen joins us now with more. Weve had recordbreaking temperatures in australia this week. We are 20 days into spring. It doesnt feel like it. Paul no. We are just out of winter. Records falling all over the place. 40 degrees in sydney today. For the first time in history, five days and around with temperatures in the 30s in september. In terms of declaring an el nino, weld the. Its taken a while because they have a higher threshold than u. N. And u. S. Agencies when it comes to measuring sea surface temperatures. The bom declared a positive Indian Ocean Dipole which means the indian ocean is warmer at its western edge as well. Its a double whammy for australia in terms of lower rainfall and drier conditions. Shery what are we expecting to see in australia this summer . Paul we are getting a taste of it. 74 fires in New South Wales right now. They are under control weve had 20 schools closed around the state as well. So it means we are going to get more of the same. Weve just had three la nina events in a row where its been much wetter than usual. Theres a lot of vegetation, plenty of fuel for bushfires. Theres a concern that we could see a repeat of the seven devastating fires that we saw in 2020. These events is expected to last until the end of spring. El nino expected to last until the end of february which is the end of summer in australia. It will be a grueling few weeks ahead. Haidi coming up, was a 2 inflation goal is becoming more of a challenge for the fed. We speak to the International LaborOrganization Director general about the latest labor supply trends. A standout year for industrial action. Thats about it for daybreak australia. Daybreak asia is next. We are looking like a mixed to lower picture as we have a lot of investors stack mired as we get into that third meeting. Top of mine is discontinued ascent we see in oil prices and how that potentially plays into the inflation picture. This is bloomberg. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh people are always asking me ahhhhhh two words come to mind for me. One is responsibility, the other is purpose. Its just so inspiring to do research that impacts human lives. Stand up to cancer has been a critical partner in advancing research for cancer. Cancer Research Saves lives. So please help us fight in this battle against cancer. That first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy